2. INTRODUCTION
It’s clear that the initial performance fluctuations
of 2021 have gradually started to iron themselves
out. In 2021 we saw more transactions being sent to
authentication via 3DS 2.1 globally. This suggested
a growing level of understanding of the Strong
Customer Authentication (SCA) protocol. And likely
made the retirement of 3DS 1 less painful.
As you’d expect, we’ve seen increased adoption of
3DS 2.2. The global average for transactions passing
through this latest version has shot up to 17% from ≈
1% in H2 2021.
That said, not everyone seems entirely convinced
by the promise of a new, more frictionless era
of authentication. Global attitudes to SCA differ
significantly depending on where you are in the world
and where you do business. For 2023, exemption
management will become increasingly relevant.
Especially as merchants look to strike the right
balance between conversion and compliance.
Welcome to the fifth edition of the Global
Payment Regulation Report!
It’s been a hectic few years for online merchants
to say the least. And 2022 was no exception.
It would be fair to say that the widespread
sunsetting of 3D Secure 1.0.2 (3DS 1) was the
cherry on top to a year punctuated by transitions
and fluctuations. So how did it pan out?
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3. ABOUT THE REPORT
This time around, we wanted to dig into the global roll-
out of 3DS alongside changing attitudes towards the
second Payment Services Directive (PSD2).
For this latest update, we have decided to reduce the
number of regions reported against so that the data sets
could be complementary. For 2022, we focused on:
Australia
Brazil
Canada
France
Germany
Italy
United Kingdom
Mexico
United States
Spain
Ireland
This report focuses on data collected in 2022. It in-
cludes findings from both our own client transaction
analysis and external data collected for our Online
Merchant Perspectives Survey.
Transactions passing through 3DS 2.2 have
increased dramatically across all countries
surveyed as this latest version becomes more
widely adopted.
Over 80% of Australian merchants said they were
either ‘concerned’ or ‘seriously concerned’ about
the impact of SCA on conversion.
Italy seems to have a far more positive outlook on
SCA. Only 44% of merchants expressed concern.
This could indicate a greater level of comfort
around the reduced levels of fraud that have
accompanied SCA’s European roll-out.
Australian merchants lead the way in exploring
exemptions. Over 70% say that exemptions are
important to their strategy.
Merchants in the UK and Ireland where SCA is
actually mandated have shown the least enthusiasm
for exemptions. Only 38% say that exemptions are
important to their PSD2 strategy.
REPORT HIGHLIGHTS
38%
44%
70%
OVER
80%
OVER
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4. Notes on the data in this report
The official discontinuation of 3DS 1.0.2 in
many regions has meant that we will no longer
report on 3DS 1 data entries.
Our figures are based on the transactions that
we can see and know to be correct. We have
also included third-party data collected from
the objective survey.
Some of the data is surprising, for example
that which indicates how many transactions
professionals in each country expect to send
to 3DS authentication. In many ways, you
might expect this figure to be close to 100%
in locations under PSD2 regulation. However,
that seems to underestimate the amount of
recurring, out of scope and/or exempt
transactions flowing through merchant
ecosystems within the time period surveyed.
It could also indicate a continued lack of
readiness on behalf of both merchants and
acquirers during the first few years of
implementation - the path to full PSD2
compliance was never going to be easy!
The Online Merchant Perspectives Survey
is a quantitative piece of market research
commissioned annually by Ravelin (carried out
by Qualtrics) using a panel of over 1,700 global
fraud and payments professionals.
Survey participants work for online merchant
businesses with more than $50 million in
annual revenue. The survey questions are
translated into each respondent’s local
market language for clarity, a few of which
are included in this report as complementary
to our internal findings.
If you have any questions around how this data is
collected or are interested in learning more about
our authentication services, you can get in touch
via ravelin.com/contact-us.
In this report:
• 3D Secure 2.1 refers to version 2.1.0
• 3D Secure 2.2 refers to version 2.2.0
•
Frictionless payments occur when
authentication is attempted and the payment is
successfully authenticated without a challenge.
METHODOLOGY
PSD2
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5. GLOBAL
STATISTICS
Card scheme success rates give us
a good indication of issuer readiness
around 3DS versions. We’ve seen a
growing number of issuers adopting
3DS 2.1 across card schemes which is
wholly inline with industry trends.
3DS
2.1
47%
32%
50%
30%
45% 41%
45% 46%
3DS
2.2
2022
3DS success rates on
card schemes globally
NOTE
We have only included a limited number of 3DS 2.2
transactions in this report. But we’ll likely see these success
rates rise in the next few months. In November, Mastercard
reported that 33% of their 3DS traffic goes through 3DS
version 2.2. And we can reasonably assume that Visa rates
will be similar to what we are seeing in our own data.
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6. North America 66% 15%
Europe 59% 21%
Global 63% 17%
GLOBAL
STATISTICS
North America 81% 78%
Europe 82% 81%
Global 81% 78%
North America 50% 54%
Europe 55% 62%
Global 55% 53%
Percentage of payments using 3DS versions 2.1 2.2
Percentage of successful authentications using 3DS versions 2.1 2.2
Percentage of frictionless 3DS authentications using versions 2.1 2.2
AVERAGES
2022
3DS
2.1
3DS
2.2
*Please note: 3DS1 transactions were recorded but not displayed
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Global
United States, Canada,
United Kingdom, Ireland,
Spain, Italy, France, Germany,
Australia, Brazil Mexico
North America
United States Canada
Europe
United Kingdom, Ireland, Spain,
Italy, France Germany
7. GLOBAL
STATISTICS
is the average percentage of traffic sent
to 3DS authentication globally
of survey responses named credit card
payment as the fraudiest payment type
North America 67%
Europe 61%
Global 67%
CREDIT CARD PAYPAL DEBIT CARD
Global 67% 61% 63%
North America 59%
Europe 53%
Global 59%
Average percentage of survey respondents using
exemptions as part of their authentication strategy
Average percentage of survey respondents concerned
about the impact of 3DS on conversion
Fraudiest payment methods
21 - 40%
67%
SURVEY RESPONSES SHOW
THAT BETWEEN
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8. Australia
3D SECURE PAYMENTS
PERCENTAGE OF TRAFFIC SENT TO 3DS AUTHENTICATION
ARE YOU CONCERNED ABOUT THE IMPACT
OF 3DS ON CONVERSION?
AUTHENTICATION STRATEGY
3DS 2.1 3DS 2.2
3DS 2.1 3DS 2.2
72% 9%
87% 79% Authentication success rate
61% 57% Frictionless 3DS authentications
*Please note: 3DS1 transactions were recorded but not displayed
Do you currently use
exemptions as part of
your authentication
strategy under PSD2?
Authentication success and frictionless payments
Percentage of payments using 3DS version 2.1 2.2
Yes No Not relevant
8%
74%
16%
Very concerned
Concerned
Slightly concerned
Unconcerned
52%
33%
5%
9%
1 - 20%
0% 21 - 40% 41 - 60% 61 - 80% 81 - 99% 100%
10%
16%
2%
23%
42%
4% 1%
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RAVELIN
Credit Card
*Excluding American Express
PayPal Debit Card
3D SECURE REPORT
71%
54%
61%
TOP THREE FRAUDIEST PAYMENT METHODS
9. 3D SECURE PAYMENTS
PERCENTAGE OF TRAFFIC SENT TO 3DS AUTHENTICATION
ARE YOU CONCERNED ABOUT THE IMPACT
OF 3DS ON CONVERSION?
AUTHENTICATION STRATEGY
3DS 2.1 3DS 2.2
3DS 2.1 3DS 2.2
Authentication success and frictionless payments
Do you currently use
exemptions as part of your
authentication strategy
under PSD2?
*Please note: 3DS1 transactions were recorded but not displayed
Percentage of payments using 3DS version 2.1 2.2 1 - 20%
0% 21 - 40% 41 - 60% 61 - 80% 81 - 99% 100%
15% 17%
2%
28%
22%
7% 6%
Very concerned
Concerned
Slightly concerned
Unconcerned
45%
23%
5%
23%
Yes No Not relevant
10%
60% 27%
77% 90% Authentication success rate
39% 50% Frictionless 3DS authentications
62% 15%
Brazil
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TOP THREE FRAUDIEST PAYMENT METHODS
Credit Card
*Excluding American Express
PayPal Debit Card
3D SECURE REPORT
69%
60%
86%
10. 3D SECURE PAYMENTS
PERCENTAGE OF TRAFFIC SENT TO 3DS AUTHENTICATION
ARE YOU CONCERNED ABOUT THE IMPACT
OF 3DS ON CONVERSION?
AUTHENTICATION STRATEGY
3DS 2.1 3DS 2.2
3DS 2.1 3DS 2.2
Authentication success and frictionless payments
Percentage of payments using 3DS version 2.1 2.2
Do you currently use
exemptions as part of your
authentication strategy
under PSD2?
*Please note: 3DS1 transactions were recorded but not displayed
Very concerned
Concerned
Slightly concerned
Unconcerned
49%
15%
2%
27%
Yes No Not relevant
7%
61% 26%
Canada
1 - 20%
0% 21 - 40% 41 - 60% 61 - 80% 81 - 99% 100%
16%
20%
1%
25% 27%
3% 2%
78% 75% Authentication success rate
51% 50% Frictionless 3DS authentications
72% 11%
Canada
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TOP THREE FRAUDIEST PAYMENT METHODS
Credit Card
*Excluding American Express
PayPal Debit Card
3D SECURE REPORT
63%
67%
64%
11. 3D SECURE PAYMENTS
PERCENTAGE OF TRAFFIC SENT TO 3DS AUTHENTICATION
ARE YOU CONCERNED ABOUT THE IMPACT
OF 3DS ON CONVERSION?
AUTHENTICATION STRATEGY
3DS 2.1 3DS 2.2
3DS 2.1 3DS 2.2
Authentication success and frictionless payments
Percentage of payments using 3DS version 2.1 2.2
Do you currently use
exemptions as part of your
authentication strategy
under PSD2?
*Please note: 3DS1 transactions were recorded but not displayed
Very concerned
Concerned
Slightly concerned
Unconcerned
46%
29%
17%
6%
Yes No Not relevant
10%
62% 24%
1 - 20%
0% 21 - 40% 41 - 60% 61 - 80% 81 - 99% 100%
17% 16%
2%
29% 26%
4% 4%
79% 80% Authentication success rate
47% 63% Frictionless 3DS authentications
62% 20%
France
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TOP THREE FRAUDIEST PAYMENT METHODS
Credit Card
*Excluding American Express
PayPal Debit Card
3D SECURE REPORT
64%
60%
54%
12. 3D SECURE PAYMENTS
PERCENTAGE OF TRAFFIC SENT TO 3DS AUTHENTICATION
ARE YOU CONCERNED ABOUT THE IMPACT
OF 3DS ON CONVERSION?
AUTHENTICATION STRATEGY
3DS 2.1 3DS 2.2
3DS 2.1 3DS 2.2
Authentication success and frictionless payments
Percentage of payments using 3DS version 2.1 2.2
Do you currently use
exemptions as part of your
authentication strategy
under PSD2?
*Please note: 3DS1 transactions were recorded but not displayed
Very concerned
Concerned
Slightly concerned
Unconcerned
45%
18%
3%
28%
Yes No Not relevant
8%
55% 31%
1 - 20%
0% 21 - 40% 41 - 60% 61 - 80% 81 - 99% 100%
22%
10%
2%
31%
19%
5% 4%
86% 82% Authentication success rate
61% 69% Frictionless 3DS authentications
60% 20%
Germany
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TOP THREE FRAUDIEST PAYMENT METHODS
Credit Card
*Excluding American Express
PayPal Debit Card
3D SECURE REPORT
50%
67%
61%
13. 3D SECURE PAYMENTS
PERCENTAGE OF TRAFFIC SENT TO 3DS AUTHENTICATION
ARE YOU CONCERNED ABOUT THE IMPACT
OF 3DS ON CONVERSION?
AUTHENTICATION STRATEGY
3DS 2.1 3DS 2.2
3DS 2.1 3DS 2.2
Authentication success and frictionless payments
Percentage of payments using 3DS version 2.1 2.2
Do you currently use
exemptions as part of your
authentication strategy
under PSD2?
*Please note: 3DS1 transactions were recorded but not displayed
Very concerned
Concerned
Slightly concerned
Unconcerned
35%
9%
13%
41%
Yes No Not relevant
14%
56%
28%
1 - 20%
0% 21 - 40% 41 - 60% 61 - 80% 81 - 99% 100%
18%
13%
2%
29% 28%
5% 4%
83% 80% Authentication success rate
57% 64% Frictionless 3DS authentications
60% 20%
Italy
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RAVELIN
TOP THREE FRAUDIEST PAYMENT METHODS
Credit Card
*Excluding American Express
PayPal Debit Card
3D SECURE REPORT
61%
52%
65%
14. 3D SECURE PAYMENTS
PERCENTAGE OF TRAFFIC SENT TO 3DS AUTHENTICATION
ARE YOU CONCERNED ABOUT THE IMPACT
OF 3DS ON CONVERSION?
AUTHENTICATION STRATEGY
3DS 2.1 3DS 2.2
3DS 2.1 3DS 2.2
Authentication success and frictionless payments
Percentage of payments using 3DS version 2.1 2.2
Do you currently use
exemptions as part of your
authentication strategy
under PSD2?
*Please note: 3DS1 transactions were recorded but not displayed
Very concerned
Concerned
Slightly concerned
Unconcerned
48%
35%
2%
15%
Yes No Not relevant
7%
72%
22%
1 - 20%
0% 21 - 40% 41 - 60% 61 - 80% 81 - 99% 100%
12%
16%
1%
38%
18%
9%
5%
76% 50% Authentication success rate
38% 0% Frictionless 3DS authentications
63% 8%
Mexico
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RAVELIN
TOP THREE FRAUDIEST PAYMENT METHODS
Credit Card
*Excluding American Express
PayPal Debit Card
3D SECURE REPORT
70%
52%
69%
15. 3D SECURE PAYMENTS
PERCENTAGE OF TRAFFIC SENT TO 3DS AUTHENTICATION
ARE YOU CONCERNED ABOUT THE IMPACT
OF 3DS ON CONVERSION?
AUTHENTICATION STRATEGY
3DS 2.1 3DS 2.2
3DS 2.1 3DS 2.2
Authentication success and frictionless payments
Do you currently use
exemptions as part of your
authentication strategy
under PSD2?
*Please note: 3DS1 transactions were recorded but not displayed
Percentage of payments using 3DS version 2.1 2.2
Very concerned
Concerned
Slightly concerned
Unconcerned
54%
20% 20%
3%
Yes No Not relevant
12%
56%
30%
81% 78% Authentication success rate
56% 53% Frictionless 3DS authentications
59% 23%
Spain
1 - 20%
0% 21 - 40% 41 - 60% 61 - 80% 81 - 99% 100%
33%
9%
2%
27%
20%
5% 1%
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TOP THREE FRAUDIEST PAYMENT METHODS
Credit Card
*Excluding American Express
PayPal Debit Card
3D SECURE REPORT
66% 67%
58%
16. PERCENTAGE OF TRAFFIC SENT TO 3DS AUTHENTICATION
ARE YOU CONCERNED ABOUT THE IMPACT
OF 3DS ON CONVERSION?
AUTHENTICATION STRATEGY
Do you currently use
exemptions as part of your
authentication strategy
under PSD2?
*Please note: 3DS1 transactions were recorded but not displayed
Very concerned
Concerned
Slightly concerned
Unconcerned
29%
38%
11%
11%
3DS 2.1 3DS 2.2
3DS 2.1 3DS 2.2
3D SECURE PAYMENTS
Authentication success and frictionless payments
Percentage of payments using 3DS version 2.1 2.2
Yes No Not relevant
21%
38% 31%
1 - 20%
0% 21 - 40% 41 - 60% 61 - 80% 81 - 99% 100%
19%
12%
1%
33%
16%
5% 4%
UnitedKingdom
82% 83% Authentication success rate
53% 62% Frictionless 3DS authentications
56% 23%
Ireland
*Please note: 3DS1 transactions were recorded but not displayed
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RAVELIN
TOP THREE FRAUDIEST PAYMENT METHODS
Credit Card
*Excluding American Express
PayPal Debit Card
3D SECURE REPORT
73%
56%
66%
17. 3D SECURE PAYMENTS
PERCENTAGE OF TRAFFIC SENT TO 3DS AUTHENTICATION
ARE YOU CONCERNED ABOUT THE IMPACT
OF 3DS ON CONVERSION?
AUTHENTICATION STRATEGY
3DS 2.1 3DS 2.2
3DS 2.1 3DS 2.2
Authentication success and frictionless payments
Percentage of payments using 3DS version 2.1 2.2
Do you currently use
exemptions as part of your
authentication strategy
under PSD2?
*Please note: 3DS1 transactions were recorded but not displayed
Very concerned
Concerned
Slightly concerned
Unconcerned
30%
28%
7%
29%
1 - 20%
0% 21 - 40% 41 - 60% 61 - 80% 81 - 99% 100%
15% 16%
2%
26%
22%
8% 7%
Yes No Not relevant
11%
56% 27%
83% 81% Authentication success rate
49% 57% Frictionless 3DS authentications
59% 18%
UnitedStates
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RAVELIN
TOP THREE FRAUDIEST PAYMENT METHODS
Credit Card
*Excluding American Express
PayPal Debit Card
3D SECURE REPORT
57%
65%
74%
18. If you have any questions, feedback
or comments please get in touch via
the website.
Thank you for reading
this survey report
GET IN TOUCH
Learn more about Ravelin’s
fraud and payments services at
ravelin.com/solutions/3ds
